Solar Panel Prices to Drop 15% Due to Duty Exemption
By: Omed Hajjana
Islamabad: The exemption of duties on raw materials for manufacturing of PV modules and allied equipment is expected to cause a substantial decrease in solar panel prices.
In the budget duties on raw materials for manufacturing of PV modules and allied equipment have been made zero to provide incentive to local manufacturing.
Faiz Bhutta energy expert said that panels are already duty exempted. He said that prices had been reduced because of demand-supply issues.
He said that demand was low whereas the supply had increased which led to a substantial decrease in the prices of solar panels.
Secondly, he said that the decrease in the solar panel was mainly due cut in wafer prices up to 20 percent in the international market.
In Financial Year 23-24, the government makes efforts to boost renewable energy in Pakistan which may lead to a drop in solar penal prices by 15%.
In a significant development, the federal cabinet decided to exempt duties on the import of raw materials for solar panels manufacturing, batteries, and their solar panel equipment and machinery locally.
According to sources, these steps aim to promote local industry and to achieve the target of 10,000 MWp from solar panels to tackle the disaster of Climate Change.
Solar Panel Prices To Drop Due to Duty Exemption
According to the salient features of Finance Bill 24-2023, the government had eliminated the customs duty on the raw materials for the manufacture of solar panels.
The customs duty has also been removed on the raw materials for the manufacturing of solar panel batteries.
As per the Finance Bill, the tax on the import of machinery and raw material for solar panel inverters has also been ended.Nepra Rejects To Lower Rooftop Solar Power Tariff
According to media reports, a German think tank, Agora Energiewendie, recommends that Pakistan has the potential to generate at least 33,000 megawatts of wind and solar power to increase electricity production to nearly 70,000 MW in the next ten years.
Keeping in view the government’s decision environmental expert, Zubair told the NewzTodays, climate activists acknowledged these kinds of moves taken by the government to deal with the disaster of climate change and their devastating impacts on humanity.
He said that boosting renewable energy like solar panels, and wind power are environmentally friendly energy solutions.
He added that switch to solar panels to save the planet.
“When it comes to environmental impact, increasing the installation of solar panel energy in Pakistan, this will help to emit greenhouse gasses”, he maintained.
Commenting on this positive development, Mian Sultan Mahmood, Chairman of Creative Group, while talking to NewzTodays, said that this kind of positive step taken by the government has been appreciated by the solar panel industry.
He said that this will be a big relief for the public interest.
He said that the price of solar panels in the market is likely to reduce by 15 percent in the upcoming days.
